Apple’s next iPhones could get pricier over the new A20 chip

Upcoming iPhones could see a price increase due to Apple’s next-generation A20 chip, according to a report from China Times citing industry insiders.

This year, Apple already raised prices for the iPhone 17 Pro and iPhone Air compared to last year’s models. Another, more noticeable price hike is reportedly coming next year.

The reason lies in the new A20 processor, which will be manufactured using a 2-nanometer process instead of the current 3-nanometer one. The transition to a more advanced node significantly raises production costs.

Rising demand and the shift to new fabrication technology have increased expenses for TSMC and its partners, with the Taiwanese manufacturer investing heavily in the development of 2-nm production.

According to sources, the cost of producing 2-nm chips will be at least 50% higher than that of 3-nm ones — a substantial difference that will likely translate into higher retail prices for Apple’s next iPhone lineup. Neither Apple nor TSMC has disclosed financial details of their partnership, but analysts expect the cost surge to impact final device prices.